Cash flow loans on ~$1.5m of EBITDA?

by an investor from Northwestern University - Kellogg School of Management

3 years ago

Does anyone know of a lender who lends against cash flow on smaller deals?

Our entry multiple is 3.5x and the company has a ~28% EBITDA margin on 3.6m of revenue. There are not many assets to lend against.

~$1.4m/year revenue for maintenance services. The balance is mostly sole sourced project work.

3 likes
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11 comments

lender from Georgetown University

John, I agree that you should be able to get a SBA loan, but perhaps you already knew that. Are you searching for a non-bank lender? I might be able to help.

3 years ago | like reply | 0 likes

intermediary from Boise State University

I agree with several of the prior comments. In my first career, I was a commercial/SBA lender for 20 years and have been a business intermediary for 10 years. This sounds financeable. Just need to know the details as stated above (industry, trends, cash down into the purchase, and strength of buyers/guarantors since there is limited collateral)

3 years ago | like reply | 1 like

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